Do Hedge Funds Love Liquidity Services, Inc. (LQDT)?

Since Liquidity Services, Inc. (NASDAQ:LQDT) has sustained a falling interest from the aggregate hedge fund industry, we can see that there was a specific group of funds that decided to sell off their full holdings by the end of the third quarter. Intriguingly, Jim Roumell’s Roumell Asset Management sold off the biggest stake of all the investors followed by Insider Monkey, worth about $4.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its stock, about $0.5 million worth.

Let’s also examine hedge fund activity in other stocks similar to Liquidity Services, Inc. (NASDAQ:LQDT). These stocks are Heidrick & Struggles International, Inc. (NASDAQ:HSII), Rockwell Medical Inc (NASDAQ:RMTI), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), and Akebia Therapeutics Inc (NASDAQ:AKBA). This group of stocks’ market caps match LQDT’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $32 million in LQDT’s case. Heidrick & Struggles International, Inc. (NASDAQ:HSII) is the most popular stock in this table. On the other hand Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) is the least popular one with only 3 bullish hedge fund positions. Liquidity Services, Inc. (NASDAQ:LQDT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HSII might be a better candidate to consider taking a long position in.

Disclosure: None